The move comes after the city had been left with just one such broadcaster as the government shut down the license of Asia Television, Hong Kong's oldest TV station.

HKTV had risen almost 30% in U.S. trading Tuesday on expectations it was stepping in to save the nearly bankrupt ATV, but gave back gains yesterday, -21.2%, as the company denied those reports. HKTV was down 12.5% in Hong Kong trading Thursday.

I-Cable Communications (OTCPK:ICABY) is awaiting word on its OTA license and moved up more than 4% in Hong Kong on positive hopes there.

Hong Kong Television (NASDAQ:HKTV) has soared 28.3% in U.S. trading on news that its executive chairman, Wai-Kay "Ricky" Wong, is buying a controlling stake in his nearly bankrupt rival Asia Television.

Media reports have mainland China businessmen Wong Ching and Wong Ben-Koon selling their stakes to Ricky Wong; the two controlled 52% of ATV.

The financial details are undisclosed and regulators would need to clear the deal; the Executive Council is holding a special meeting tomorrow to discuss it.

But the government "would rather renew ATV's licence than let it die," says political scientist James Sung Lap-kung.

Hong Kong Television Network (HKTV+39.4%) shares rocket after the broadcaster secures spectrum from a unit of China Mobile for HK$142.2M ($18.3M) with the intention of using the asset to offer mobile TV services.

Barclays' Joyce Zhou noted that the move "suggests [HKTV] will continue to operate in the Hong Kong television market." The company was denied a free TV license in Oct., a move that led to protests by tens of thousands. The company will resume content production and begin distribution through mobile channels, with 3-5 channels planned.